Equity release is a way of unlocking the value of your home, allowing you to access funds without having to move. Selling a house with equity release can be a complex process, so it’s important to understand the different options available and the implications of each. This article will provide an overview of equity release and discuss whether or not you can sell your house with equity release in place.
What is Equity Release?
Equity release is a way of unlocking the value of your home without having to move. It allows you to access funds from the equity in your house, either as a lump sum or in regular payments. The most common types of equity release are lifetime mortgages and home reversion plans. With a lifetime mortgage, you borrow a percentage of the value of your home and repay the loan, plus interest, when you die or move into long-term care. With a home reversion plan, you sell a percentage of the value of your home to a provider in exchange for a lump sum or regular payments.
Can I Sell My House with Equity Release?
Yes, it is possible to sell your house with equity release in place. However, it is important to understand that the equity release provider will need to be repaid before you can access any proceeds from the sale. This means that you may not be able to get the full value of your property if you have already taken out a substantial amount of equity. It is also important to bear in mind that the process of selling a house with equity release can take longer than usual, as the equity release provider will need to approve the sale before it can be completed.
In conclusion, it is possible to sell a house with equity release in place, although the process can be complex and take longer than usual. It is important to understand the implications of equity release and the repayment terms before entering into an agreement. Ensuring that you are aware of all the details of your agreement can help to ensure that the process of selling your house with equity release is as smooth as possible.
